Spatial Pricing on Land Rental Markets
This paper analyzes spatial competition on land rental markets. It contributes to the small body of literature that investigates the optimal spatial price policy under competition and extents previous work by considering economies of size. Because the consideration of increasing or decreasing returns of additional land and the endogenous choice of spatial pricing is analytically intractable, a computational economics approach is used to simulate spatial pricing in the presence of economies of size. This paper is a first step towards a spatial competition model of a land rental market and based on selected simulations it shows that price discrimination is likely to arise.
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- Catherine A. Durham & Richard J. Sexton & Joo Ho Song, 1996. "Spatial Competition, Uniform Pricing, and Transportation Efficiency in the California Processing Tomato Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 115-125.
- Silke Huettel & Anne Margarian, 2009. "Structural change in the West German agricultural sector," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 759-772, November.
- Panos Fousekis, 2011. "Free-on-board and uniform delivery pricing strategies in a mixed duopsony," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 119-139, March.
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